A Guide to Set Up a Limited Company in Hong Kong
Many business people looking to open their business want to know more about the benefits of having a limited liability company in Hong Kong. A Limited company can be set up by guarantee or by shares. A little business by shares is probably the most popular form of company in Hong Kong and is still a trendy choice for establishing a secondary subsidiary. It is also commonly set up by profit-oriented enterprises looking to protect their assets in the wake of bankruptcy. But there are several other advantages of a company formation in Hong Kong to consider. Read on to find out more.
Set up Hong Kong Limited company is a simple process that typically takes a couple of days. Registration is usually done at the Companies Registry in the UK. The same goes for the lodging of the Articles of Association at the Registry in Hong Kong. Once you have both done these, you will need to submit your application to the Companies Registry together with the relevant documents. It may then take a couple of months until your company formation is approved.
But there are benefits that you can get from company formation in Hong Kong, even if you are setting it up as a Limited Liability Company. For example, you will have access to the financial markets, a vibrant business market, and access to the local economy. All these are the reasons why many people in Hong Kong want to open a limited liability company.
But the benefits do not end here. Opening a company has a lot of other advantages. One of these is getting a sound corporate tax system where you pay no corporate income tax at all. Instead, you pay tax only on your income from salaries or dividends. You enjoy all these benefits because Hong Kong has a new Horztron law regulating the payment of corporate income tax by foreign companies.
Another benefit from company formation in Hong Kong is its free economy. The free economy allows small businesses to flourish without paying the heavy taxes that other companies have to pay. You may also be able to buy your land and property to run your business out of your home. There are also many incentives available for registering a limited liability company in Hong Kong, such as exemption from import and export duties, low rate of customs duty for goods imported into the country, exemption from income taxation for the first two years of business, and ten years of tax amnesty.
However, limited liability company in Hong Kong still has some problems, and these are the rules that apply to registration. You cannot own more than Hong Kong dollars 2 million, and you have to pay corporate income tax on your gross revenue not exceeding the value of the money plus your deductions and expenses. There are also some restrictions for transferring shares to the limited liability company, such as limiting the transfer for people under 18. You will also have to pay an annual administrative fee of up to one thousand Hong Kong dollars.
You must make sure that your limited liability company in Hong Kong is always in good standing. You must keep a record of your profits and losses, And it’s always advisable to seek the help of a licensed professional to assist you with the whole process.
Your business will not start up immediately. To set up a limited liability company in Hong Kong, you need to register it at the Companies Registry. It is done at the Commercial Registry of Hong Kong. After the registration, you have to provide the appropriate information and fees to the Registrar of Companies. The next step is for the company to obtain a business license from the Registration and Licensing Department of the Commercial Registry of Hong Kong. After that, you can conduct the company formation process.